Marlboro Country Blues

Poor Michael A. Miles. Since taking charge at Philip Morris Cos. in 1991, he has more often than not been the bearer of extremely bad news.

First, there was "Marlboro Friday"--Apr. 2--the day Philip Morris announced it was slashing prices on Marlboro cigarettes by 40 per pack. The news sent its stock down 23%. Then, on Nov. 24, the company's board approved Miles's plan for a wholesale restructuring. Under its terms, Philip Morris plans to eliminate 14,000 jobs, or 8% of its work force, and close roughly 40 plants. Among the casualties: Miller Brewing Co., which announced on Dec. 1 that it will lay off 1,200 workers and shutter a plant. The moves will reduce profits by almost $1 billion this year. And for the first time in 25 years, Philip Morris's dividend ($2.60 this year) will not be increased. Still, Philip Morris stock jumped 62.5 , to $55.50, on the news of the restructuring.